Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

1. Introduction to Accounting

The Financial Statements

Financial Accounting

1. Introduction to Accounting

The Financial Statements

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Multiple Choice

The amount of cash to be reported on the balance sheet at June 30 is the:

average cash balance during the month of June

balance of the Cash account as of June 30

sum of all cash inflows and outflows for the year

total cash received during the month of June

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Verified step by step guidance

Understand the concept of 'cash balance' on the balance sheet: The balance sheet reports the financial position of a company at a specific point in time. The cash balance represents the amount of cash available as of the reporting date, not averages or cumulative totals.

Identify the correct approach: The cash balance on the balance sheet is derived from the ending balance of the Cash account in the general ledger as of the specific date (June 30 in this case). It does not involve averages, inflows/outflows for the year, or monthly totals.

Clarify why other options are incorrect: The average cash balance during June is not relevant for the balance sheet, as it does not reflect the actual cash available at the reporting date. Similarly, the sum of all cash inflows and outflows for the year or total cash received during June does not represent the ending cash balance.

Locate the Cash account balance: To determine the cash balance for June 30, review the general ledger or trial balance for the Cash account. The ending balance as of June 30 is the amount reported on the balance sheet.

Ensure accuracy: Verify that the Cash account balance includes all transactions up to June 30, such as deposits, withdrawals, and adjustments, to ensure the reported amount is correct.